BUZZ-U.S. STOCKS ON THE MOVE-Apple, Sophiris, Valeant, Gap, Scientific Games

Reuters Staff

10 Min Read

(For faster updates on individual market-movers, Eikon users please use search string "STXBZ US"; for the Day Ahead newsletter, link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/nex49s) U.S. stock index futures were lower on Tuesday, a day after Wall Street suffered its steepest drop in six weeks as investors braced for an interest-rate hike and fretted about China's economic health.

Dow Jones industrial average futures were down 0.15 percent at 17,648, S&P 500 futures were down 0.22 percent at 2,068.5 and Nasdaq 100 futures were down 0.46 percent at 4,631.5.

** APPLE INC, Monday close $120.57, -2.49 pct premarket

** AVAGO TECHNOLOGIES LTD, Monday close $126.5, -2.37 pct premarket

** CIRRUS LOGIC, Monday close $32.21, -2.92 pct premarket

** QORVO, Monday close $54.09, -3.86 pct

Credit Suisse is the latest broker to note weakening demand for the iPhone 6s leading to cuts in component orders from Apple to its Asian suppliers. CS’s comments follow HSBC on Monday, which said that iPhone 6s and 6s Plus adoption after about 40 days of being on sale has been worse than the iPhone 6 and only marginally better than the iPhone 5. Supply chain stocks fell on the commentary.

The restaurant chain could reopen locations in Washington state and Oregon as soon as Wednesday after a batch of tests found no E. coli bacteria in food samples, health officials said on Monday.

** ARCH COAL INC, Monday close $1.56, -13.46 pct premarket

The second largest coal miner in the United States, said on Monday that it could follow its smaller peers into bankruptcy in the near term, even if current talks with creditors yield a restructuring agreement.

The movie studio behind “Hunger Games” franchise reported lower-than-expected Q2 revenue and posted an unexpected loss, hurt by the underperformance of “American Ultra”, higher marketing costs for “Sicario” and a $7.2 million write-down on “The Last Witch Hunter”.

** GAP INC, Monday close $27.69, -6.25 pct premarket

The apparel retailer reported lower-than-expected Q3 sales, hurt by a strong dollar, while October comparable sales fell much more than expected due to a steep decline in comparable sales at the Banana Republic chains.

** TUBEMOGUL INC, Monday close $12.46, +8.27 pct premarket

The advertising software maker reported better-than-expected Q3 revenue, helped by higher sales from platform services business where it executes its customers’ advertising campaign. The company also forecasts Q4 revenue above analysts’ estimate.

** SCIENTIFIC GAMES CORP, Monday close $11.57, -23.16 pct premarket

The slot machine maker reported a much bigger Q3 net loss, mainly due to a $535 million goodwill impairment charge associated with recent acquisitions.

Deutsche Bank said the chare was a “eyes wide open moment” and “call out the reality that future cash flows will be lower than previously articulated”.

Canadian Pacific is exploring a potential acquisition of U.S. peer Norfolk Southern, a person familiar with the matter said on Monday. The two rail companies have held preliminary merger talks, but there is no certainty that negotiations will advance, the person said.

The energy-focused construction company won a brownfield contract from RasGas Co Ltd for engineering, procurement, construction and installation (EPCI) of a project, offshore Qatar. McDermott also reported better-than-expected Q3 results.

** RACKSPACE HOSTING INC, Monday close $27.09, +7.97 pct premarket

The web-hosting company reported Q3 revenue and profit above analysts’ average estimate, helped by higher demand for its online storage space offering. The company also said it intends to offer $350 million of senior notes due 2024.

The drugmaker said Q3 revenue jumped 25 percent, boosted by increased sales of lead drug Zadaxin, and the company also raised its FY 2015 adjusted EPS forecast.

** LEAPFROG ENTERPRISES INC, Monday close $0.89, -23.03 pct premarket

The toy maker said it says it continues to explore all available financial, strategic and structural alternatives after it reported lower-than-expected Q2 sales hurt by significant markdown to support its promotion plans for LeapTV. The company said international sales continue to be impacted by the closure of Target stores in Canada and that 2016 sales would “contract considerably” relative to the prior year.

** REAL GOODS SOLAR INC, Monday close $1.17, -33.33 pct premarket

The SEC has subpoenaed the solar company on June 29, asking for documents related to investigation into a July 2014 pipe offering.

The business management services provider said its accounting firm, Moss Adams LLP, has information, which indicates an illegal act has or may have occurred regarding BBSI’s workers’ compensation expense reserve. Barrett said in May that SEC was investigating its accounting practices with regard to worker compensation reserves.

** OPKO HEALTH INC, Monday close $9.95, +6.03 pct premarket

The drug developer posted an unexpected Q3 profit, helped by several non-recurring and non-cash activities, on significantly higher revenue that beat analysts’ expectations. Revenue was boosted by recently acquired Bio-Reference Labs and EirGen and also income from a collaboration with Pfizer Inc.

** SUNEDISON INC, Monday close $7.4, +2.30 pct premarket

The U.S. solar company said it would reduce sales of renewable energy assets to its “yieldcos” until market conditions improved.

** D.R. HORTON INC, Monday close $28.77, +1.84 pct premarket

The largest U.S. homebuilder reported a near 44 percent jump in profit for the fourth quarter as the company sold more homes and it said orders rose 19 percent.

** MOTOROLA SOLUTIONS INC, Monday close $68.2, +1.91 pct premarket

Activist investor ValueAct, the largest shareholder in the walkie-talkie maker, said the company’s shares were undervalued and that it would talk to its board about ways to enhance shareholder value.

Shares of the beleagured Canadian drugmaker oscillated as it updated investors on its business operations. Philidor, the controversial specialty pharmacy used by Valeant, will cease operations by end-January, executives said in a conference call.

** MALLINCKRODT PLC, Monday close $58.01, -1.05 pct premarket

Mallinckrodt tumbled 17 percent on Monday after influential short-seller Citron Research called the drugmaker “a far worse offender of the reimbursement system”. Earlier in October, Citron had accused Valeant Pharmaceuticals of using specialty pharmacies to inflate revenue.

** ROCKWELL AUTOMATION, Monday close $107.79, -5.43 pct premarket

The automation systems maker reported Q4 profit and revenue below analysts’ estimates as sales in its biggest business, control products and solutions, declined. The company also forecast 2016 adjusted profit and sales below estimates, citing weak oil and gas markets, strong dollar and continued weakness in its key emerging markets.

** OCATA THERAPEUTICS INC, Monday close $4.46, +88.34 pct premarket

Japan’s Astellas Pharma Inc said late on Monday that it would buy the cell therapy developer in all-cash deal valued at about $379 million to build its presence in the opthalmology market.

** CANADIAN SOLAR INC, Monday close $23.03, +7.77 pct premarket

The solar company posted better-than-expected Q3 profit and revenue, helped by strong demand for modules from U.S., Japan, China and India.

** GALENA BIOPHARMA INC, Monday close $1.72, -11.05 pct premarket

The oncology drug developer said it planned to divest its commercial business, which comprises Abstral and Zuplenz tablets used for treating cancer pain and prevention of nausea and vomiting caused by surgery. It also posted a bigger-than-expected Q3 loss.

** SOPHIRIS BIO INC, Monday close $0.8613, +363.25 pct premarket

The drug developer said its experimental drug met the main goal of improving symptoms in men suffering from benign prostatic hyperplasia, or enlarged prostate, in a late-stage study. Similar results in a separate late-stage study for PRX302 could support U.S. approval, Sophiris said. (Reporting by Natalie Grover in Bengaluru; Editing by Savio D‘Souza)